Watheeq Financial Services commenced a Venture Capital Proptech Fund of about $26.7 million (SAR 100 million). Its objective is to provide financial empowerment to startups worldwide that are technology-driven in the real estate sector; also, they are sharia compliant. Investors find this sector prosperous and aim to partner with scalable companies.
The financial investor is raising capital, intending to reach the target before the fourth quarter of 2021. As per Forbes Middle East, the company has two prospects from Europe and four startups from the MENA region, including two from Saudi Arabia.
Watheeq is a Sharia-compliant financial services company in Saudi Arabia under the Capital Market Authority with an asset management license. It is an investment firm with innovative investment products enabling clients to grow.
The Proptech VC Fund seeks investment opportunities in early stages like Seed, Pre-Series A, Series A, Pre-Series B, and Series B. The investment size can range from SAR 200,000 ($53 330) up to SAR 5 million ($1.3 million).
The global fund primarily focuses on startups in the gulf. However, as the Saudi market is booming and there is ample opportunity in the region, the growth perspective is higher. Therefore the company can provide better assistance in the portfolio companies.
The VC has not disclosed the partner investors. Yet, Khaled Zaidan, the Managing Partner of the Fund and Head of Alternative Investments at Watheeq, informed they are market leaders in real estate companies and construction companies.
Property technology (proptech) continues to thrive in 2021 as the companies aspire the luring opportunities in the sector. In the last month, Aldar Properties disclosed the investment in the Fifth Wall venture capital firm, making it the pioneer investor from the MENA region.
The proptech sector got a significant investment for the startups this year. Gathern, which is a P2P rental marketplace, raised $6 million in the previous month. Mubawab from Morocco secured $10 million in funds in March; similarly, RentUp and Sakneen also bagged significant deals to scale their businesses.
Several factors drive technology into this sector, like the pandemic, climatic conditions, digitization, and global lockdowns. Furthermore, amid the pandemic, the global real estate market was anticipated to grow from $2687.35 billion in 2020 to $2774.45 billion in 2021 at a compound annual growth rate (CAGR) of 3. 2%.